June 19, 2024

Argentinian Authorities Introduce Bill to Drop Crypto Tax Opportunities

David Pokima

Last updated:

| 2 min read

Argentinian Authorities Introduce Bill to Drop Crypto Tax Opportunities

Source: Dalle-3

The Argentinian government has drafted a bill that seeks to drop crypto tax opportunities for undeclared assets. These tax windows significantly reduce fees for undisclosed assets at the moment.

The government led by pro-Bitcoin President Javier Milei pushed a bill titled “Law of Bases and Starting Points for the Freedom of Argentines” to parliament. The bill aims to reform laws on personal taxes, education, and justice administration.

The draft excluded cryptocurrencies and other assets from the omnibus bill effectively making it so holders cannot declare ownership of assets without paying the necessary fees.

Before this bill, digital asset holders could declare ownership of previously undeclared cryptocurrencies and pay a fixed tax.

Currently, citizens can declare ownership of undeclared assets including cryptocurrencies while paying nothing on the first $100,000 worth of assets and 15% on the rest.

Guillermo Francis, the Argentina’s Interior Minister, explained that the cryptocurrency sections of the previous law lacked consensus among lawmakers, adding that the tax requirement was a delayed treatment.

The general bill aims to strengthen and reinvent the country’s economy. Although the tax window for crypto was dropped due to a lack of political support, the government has shown its support for the sector in other ways.

Argentina’s users are also to pay 5-15% in cases of repatriation of digital assets, a fee lower than the tax charges for users domiciled in the country.

Crypto Tax Requirement for Holders

The country’s tax office AFIP recognizes cryptocurrencies as an asset class although taxes vary for holding, sale, and other use cases as well as the location of the asset. Accountant Marcos Zocaro explained that there is no tax on the asset class for a mere purchase and holding except for a sale resulting in profits.

“In the case of a natural person, for the mere fact of purchasing what the law calls digital currency, no tax is paid. What is taxed on profits is the profit produced by the sale and there is also a minimum below which there is no tax to be paid.”

There have also been some discrepancies because the Personal Property Law does not specifically mention cryptocurrencies. Still, it has been argued that crypto taxes are due as the Treasury imposed them in 2022.

Javier Milei was hailed as a pro-Bitcoin candidate in the election season and his government has moved toward improving crypto laws in the country. Aside from the drop in crypto tax opportunities, the bill seeks to enable taxpayers to legalize their digital asset holdings without more documentation regarding their origin.

Diana Mondino, Argentina’s Foreign Affairs Minister wrote on X (formerly Twitter) that cryptocurrencies would be used in the country under certain conditions.

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